A Tennessee Real Estate Agent Explains Why You Should Think About Investing in Real Estate

As any real estate agent will happily tell you, real estate is one of the best investments you can make, especially if you’re just beginning to build your investment portfolio.

Hinge Development & Realty has been serving clients in Brentwood and Franklin for over thirty years now, and we’ve helped people at all stages in their investment journey. Whether you’re brand new to real estate investment or simply want to add to, or diversify your existing portfolio, this article will detail exactly what it is that makes real estate such an excellent choice for building wealth.

Real Estate is a Tangible Investment

If you’re like a lot of people, the idea of investing in stocks and bonds that you can’t see or touch is kind of intimidating. Hearing about the latest stock market crash every so often only compounds those anxieties.

Real estate, on the other hand, is a physical investment that you can check out for yourself to see if it’s worth spending your hard-earned money on. 

You Can Control Appreciation

Renovations that increase value - bathroom or kitchen remodels, solar panel installation, new exterior paint or landscaping.

Unlike many other investments where you have no control over whether or not the investment will appreciate, you can directly control how much your property is worth by renovating it. There are many renovations that can increase your property’s value right away, such as:

  • Bathroom or kitchen remodels
  • Solar panel installation
  • Anything that increases curb appeal, such as new exterior paint or landscaping

An experienced realtor will be able to give you suggestions for easy ways to add value to a property as you’re searching for your next investment.

Real Estate Can Generate Passive Income

If there’s one thing that investors and wealth-builders love, it’s good old-fashioned passive income. Rental property ownership can generate income year-round, essentially paying for itself if you use the rental income to pay off your mortgage.

When possible, try to find a real estate agent in a full-service company that can help you take care of things like financial management, property maintenance, and tenant relationships. This frees up your time for seeking out more investments to add to your financial portfolio.

Property Can Be Leveraged

One of the nicest things about investing in real estate versus stocks and bonds is that you don’t need to have all the money upfront. When buying property, as little as 10%-20% of the asking price is usually all you need – not something you often see with other forms of investment.

This means you don’t have to put all you have into it, and you’re able to leverage one property to pay for another when it comes time to grow your portfolio.

Real Estate Investors Have Endless Options

Real estate investor options - live in the property and just see it as a long-term investment. Fix up the property and "flip" it. Rent it out (long or short-term) for passive income.

When you invest in real estate, the choices are endless when it comes to deciding how you’re going to utilize the property. Depending on your situation and ultimate goals, you might:

  • Live in the property and just see it as a long-term investment to pass down to your heirs
  • Fix up the property and “flip” it
  • Rent it out (long or short-term) for passive income

Very few investment opportunities allow for so much flexibility, making real estate an excellent choice if you want to keep your options open.

You Can Get Tax Benefits

Many new property owners are surprised when they learn how many tax deductions for homeowners there are. These tax benefits help offset the immediate cost of your investment, helping to reduce what you’ll pay during tax time and making cash available for other uses.

Remember that financial management is a vital aspect of keeping your investment portfolio healthy, so finding a real estate agent that works with financial experts specializing in real estate finance can make sure you’re getting all eligible tax deductions. As a bonus, these experts can help you make sure you’re following all rules and regulations so you can avoid potential fines.

Ready to Speak to a Real Estate Agent About Growing Your Portfolio?

Piggy bank, floor plan, house, magnifying glass.

An experienced real estate agent can help you find the perfect property for your needs, while avoiding common pitfalls that first-time investors make – a necessity if you’re new to the real estate investment game. Full service property management companies like Hinge Development & Realty can also help you with everything from financial management to managing your rental properties, which is especially helpful as your portfolio grows.
If you’re looking for property in the Brentwood or Franklin area, contact us and we’ll be happy to discuss your real estate needs.

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